Trump And The GE: Larry Fink, BlackRock Trade Stock Tips with Jerome Powell took place Thursday July 1s at 7PM. Torian Mitchell and the Shock Exchange discussed everything from Bill Cosby’s release from jail to Endo Pharmaceuticals low share price to BlackRock, Larry Fink and the Fed’s Jerome Powell. Do worry. It’s just heat. You’re be okay. Nobody has this amount of heat or this amount of content. We cover everything from the economy, to politics to important matters of the day. One of the most important matters right now is Endo’s ridiculously low share price and how to exploit it.
Endo’s EBITDA of $1.2 billion exceeds its market capitalization – that’s how mis-priced the stock is. On top of that, the company’s effective short interest exceeds both that of GameStop (GME) and AMC (AMC). Around the 20 minute mark Trump And The GE explains:
Shock Exchange: “It also has a cellulite treat that’s supposed to be a blockbuster drug. It has some exposure to opioid litigation and the stock is trading below $5 a share, which in my mind is criminal … People are very bullish on Endo … Institutions and insiders control about 85% of the stock and they don’t sell. They’re just waiting for it triple or quadruple after this opioid litigation goes away. People control about 15% of the stock are manipulating the stock. The stock has been trading sideways … people who control 15% of the shares who control the stock. The 85% of the people who are bullish don’t trade it. It’s very thinly traded …
They have about 23 million shares sold short. Of the float that’s not held by insiders – that’s about 70% of effective short interest. That compares to 34 for GameStop and 38% for AMC … I think once the investment community becomes more aware of Endo … I think Qwo standalone is worth about $35 per share.”
Torian Mitchell: “I think what’s primarily driving the recent price action is the judgment on Tennessee … some of the opioids … When you frame it, comparing it (short interest) to GME and AMC, this is an absolute no-brainer … Institutions don’t buy to hold a loss. They have enough capital to hold onto a stock for years at a time because they ultimately know that at some point it will recognize its true value … For 84% of institutions to be holding this, that ultimately speaks to Endo’s viability as a company …
Qwo, in my opinion, will be bigger than botox. Botox is clearly aesthetic. Qwo is addressing something that nearly every woman suffers from – cellulite … You a company that is possibly sitting on a drug, or a treatment that is the most popular treatment we will see in the decade, easily, and it’s trading below $5/share … It’s mind-blowing … The less than 15% left that are trading, you’re going to short those shares? That’s absolute greed.”
The best Trump And The GE can do is make the market aware of it. Let’s see what happens from here. This should be interesting.